Bitcoin Momentum Stalls as ETF Options Signal Caution

Bitcoin (BTC) is trading at $107,205.92, showing little movement after hitting all-time highs above $110,000 last week. The recent stagnation suggests fading bullish momentum, especially among traders dealing in options linked to BlackRock’s spot Bitcoin ETF (IBIT).

Market sentiment appears to be cooling, as reflected in the IBIT options market. The one-year put-call skew — a measure of demand for bearish versus bullish options — has risen to nearly neutral, up from a four-month low of -3.8, according to Market Chameleon. A skew near zero indicates balanced demand for calls and puts, signaling that traders are no longer aggressively betting on upside.

This shift suggests growing caution among investors, possibly anticipating a short-term price pullback. Similar sentiment is seen in Deribit-listed Bitcoin options. Amberdata reports that short-term call skew has weakened, meaning options expiring within two weeks are priced evenly between calls (bullish) and puts (bearish), highlighting uncertainty in near-term market direction.

While Bitcoin remains above the $107,000 level, these subtle shifts in the options markets could point to reduced confidence in immediate gains. Traders and investors are closely watching ETF-linked derivatives for insights into broader market sentiment.

With bullish enthusiasm waning, market participants may be reassessing risk, waiting for clearer signals before placing aggressive bets. As Bitcoin holds near record levels, the current pause could either consolidate strength or foreshadow a corrective move.